Shown Here:Passed House amended (05/23/2006)

Palestinian Anti-Terrorism Act of 2006 - (Sec. 2) States that it shall be U.S. policy to: (1) support a two-state solution to the Israeli-Palestinian conflict; (2) oppose those organizations, individuals, and countries that support terrorism and violence; (3) urge members of the international community to avoid contact with and refrain from financially supporting the terrorist organization Hamas or a Hamas-controlled Palestinian Authority (PA) until Hamas agrees to recognize Israel, renounce violence, disarm, and accept prior agreements, including the Performance-Based Roadmap to a Permanent Two-State Solution to the Israel-Palestinian Conflict (Roadmap); (4) promote the emergence of a democratic Palestinian governing authority that denounces and combats terrorism, upholds human rights for all people, and has agreed to recognize Israel as an independent Jewish state; and (5) continue to support assistance to the Palestinian people.

Amends the the Foreign Assistance Act of 1961 to provide assistance under such Act to the PA only during a period for which a presidential certification to Congress has determined that: (1) no PA ministry, agency, or instrumentality is controlled by a foreign terrorist organization and no member of a foreign terrorist organization serves in a senior policy making position in a PA ministry, agency, or instrumentality; (2) the PA has publicly acknowledged Israel's right to exist as a Jewish state, and is adhering to all previous agreements and understandings with the government of the United States, the government of Israel, and the international community, including the Roadmap; and (3) the PA has made demonstrable progress toward purging from its security services individuals with ties to terrorism, dismantling all terrorist infrastructure and cooperating with Israel's security services, halting anti-Israel incitement, and ensuring democracy and financial transparency.

Directs the President to make and transmit recertifications to Congress every six months (except for the first recertification which must be made within 90 days of the initial certification).

States that assistance to the PA may not be provided until 15 days after the date on which the President has provided notice to the Committee on International Relations and the Committee on Appropriations of the House of Representatives and to the Committee on Foreign Relations and the Committee on Appropriations of the Senate (Committees) in accordance with specified reprogramming notification provisions under such Act.

Exempts from such limitation, upon certification to Congress, assistance to: (1) independent Palestinian elections commissions whose members do not have ties with foreign terrorist organizations; or (2) the Office of the President of the PA, which may only be provided for non-security expenses related to facilitating a peaceful solution of the Israeli-Palestinian conflict, or for the personal security detail of the President of the PA.

Requires with respect to such exempted assistance that: (1) it be important to U.S. national security interests; and (2) the President consults with the Committees prior to obligating funds.

Applies such assistance limitations to the unexpended balances of funds obligated under such Act to the PA prior to enactment of this Act.

Requires a Government Accountability Office (GAO) report to Congress respecting auditing of assistance under such Act to the PA.

Expresses the sense of Congress that the President should be guided by such assistance limitation principles and procedures in providing direct assistance to the PA under any other provision of law.

(Sec. 3) States that: (1) assistance may be provided under such Act to nongovernmental organizations for the West Bank and Gaza only during a period for which a certification is in effect; and (2) such assistance shall be marked as assistance from the government of the United States unless the Secretary of State or the Administrator of the United States Agency for International Development (USAID) determines that such marking will endanger the persons delivering or receiving such assistance or would have an adverse effect on implementation of the assistance.

States that such assistance may not be provided until 15 days after the date on which the President has provided notice to the Committees in accordance with specified reprogramming notification provisions under such Act.

Exempts from such limitations: (1) assistance for basic human health needs; and (2) other assistance if in U.S. national interests, and the President consults with the Committees prior to fund obligations.

Requires that the Secretary, for FY2007 and FY 2008, certify to the Committees that GAO will have access to appropriate U.S. financial information in order to review assistance use.

Directs the Secretary to take steps prior to obligating funds to ensure such assistance is not provided to or through an individual or entity with terrorist ties.

Prohibits using such funds to recognize or honor individuals or the families of individuals who commit terrorism.

Sets forth auditing requirements.

Expresses the sense of Congress that the President should be guided by such assistance limitation principles and procedures in providing assistance to nongovernmental organizations for the West Bank and Gaza under any other provision of law.

(Sec. 4) Directs the President to conduct an audit and report recommendations to the Committees respecting elimination of the following entities and efforts that are duplicative or fail to ensure a balanced U.N. approach to Israeli-Palestinian issues: (1) the United Nations Division for Palestinian Rights; (2) the Committee on the Exercise of the Inalienable Rights of the Palestinian People; (3) the United Nations Special Coordinator for the Middle East Peace Process and Personal Representative to the Palestine Liberation Organization and the Palestinian Authority; (4) the NGO Network on the Question of Palestine; (5) the Special Committee to Investigate Israeli Practices Affecting the Human Rights of the Palestinian People and Other Arabs of the Occupied Territories; and (6) any other entity the Secretary determines results in duplicative efforts or funding or fails to ensure balance in the approach to Israeli-Palestinian issues.

Directs: (1) the U.S. Permanent Representative to the United Nations to use U.S. influence to seek implementation of such report's recommendations; (2) that U.S. contributions to the U.N. regular assessed budget be withheld in amounts that are proportional to the percentage of such budget expended for such entities until such recommendations' implementation; and (3) GAO to conduct a related audit.

States that the Secretary: (1) should withhold from U.S. contributions to the regular assessed budget of the United Nations for a biennial period amounts that are equal to the amounts of such budget that are expended by any U.N. affiliated or specialized agency for direct assistance to the PA; and (2) shall withhold from U.S. contributions to the regular assessed budget of the United Nations for a biennial period amounts that are equal to the amounts of such budget that are expended by any U.N. affiliated or specialized agency for direct assistance to the PA. Exempts from such limitation assistance provided: (1) during a period for which a certification is in effect; and (2) for population planning and health, and for HIV/AIDS, tuberculosis, or malaria prevention.

(Sec. 5) Expresses the sense of Congress that during any period for which a certification is not in effect the PA-controlled territory should be deemed to be in use as a terrorist sanctuary for purposes of the Export Administration Act of 1979 and the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989.

(Sec. 6) Prohibits during any period in which a certification is not in effect visa issuance to any alien who is an official of, affiliated with, or serving as a PA representative, unless: (1) the President certifies to the Committees, on a case-by-case basis, that the visa issuance is important to U.S. national security interests; or (2) in connection with U.S. obligations under the United Nations Headquarters Agreement Act.

(Sec. 7) Prohibits during any period in which a certification is not in effect travel outside of a 25-mile radius of the U.N. headquarters building for officials and representatives of the PA and of the Palestine Liberation Organization (PLO) who are stationed at the United Nations in New York City.

(Sec. 8) Prohibits during any period in which a certification is not in effect establishment of an office, headquarters, premises, or other facilities within U.S. jurisdiction at the direction of, or with funds provided by, the PA or the PLO.

Provides that: (1) the Attorney General shall enforce such provisions, including steps to apply such provisions to the Permanent Observer Mission of Palestine to the United Nations; and (2) any U.S. district court in which a violation occurs shall have authority to grant injunctive and other equitable relief.

Authorizes the President to: (1) waive such prohibition for 180 days upon certification to the Committees that such waiver is vital to U.S. national security interests, and furthers the achievement of certification requirements; and (2) renew the waiver for successive 180-day periods upon a certification for each such period.

(Sec. 9) States that it shall be U.S. policy that the U.S. executive director at each international financial institution use U.S. influence to prohibit assistance to the PA unless a certification is in effect which includes a presidential determination that specified certification requirements are being met by the PA.

(Sec. 10) States that it shall be U.S. policy that no U.S. government officer or employee shall negotiate or have substantive contacts with members or official representatives of Hamas, Palestinian Islamic Jihad, the Popular Front for the Liberation of Palestine, al-Aqsa Martyrs Brigade, or any other Palestinian terrorist organization, until such organization: (1) recognizes Israel's right to exist; (2) renounces the use of terrorism; (3) dismantles the infrastructure necessary to carry out terrorist acts, including disarming militias and elimination of all terror instruments; and (4) recognizes and accepts all previous Israel-PLO agreements and understandings.